a. Field of the Invention
The present invention pertains generally to analysis of waveforms and more particularly to analysis of historical stock price and volume data waveforms to detect specified patterns.
b. Description of the Background
Technical analysis of stock involves analyzing historical price and volume data for stocks and looking for trends that are evolving. These trends may be used as a tool to help predict buying and selling opportunities of stocks and other financial instruments.
There are many different “technical indicators” that investors use. Most of these are mathematical or statistical functions of the data. For example, along with plotting the price and volume of the stock on a daily chart, a 50-day moving average trend line can be plotted that shows the average price of a stock on any particular day based on the previous 50 days.
Particular patterns can indicate trends in the stock. Recognition of these patterns has been found to be difficult and time consuming.